Earnings at independent mortgage servicers deteriorated as loans serviced per employee moved lower. Small servicers were hurt the most.
Fourth-quarter 2017 servicing income at independent mortgage servicers and mortgage banking subsidiaries of chartered banks
was one basis point.
Servicer earnings sank from the previous three-month period, when they were 5 BPS. Income plunged from 21 BPS in the final quarter of 2016.
The
Mortgage Bankers Association delivered the data as part of its Quarterly Mortgage Bankers Performance Report Q4 2017.
Results for the report were derived from a survey of 192 mortgage servicers, though comparisons between the third and fourth quarters reflect results from just the 158 companies that participated in surveys for both periods.
The deterioration from the third quarter reflected a 3-basis-point drop in revenues and a 2-basis-point increase in expenses.
Income ranged from a 2-basis-point loss at companies that serviced fewer than 2,500 mortgages to a 9-basis-point profit at servicers with portfolios of at least 10,000 loans and up to 50,000.
As of the end of last year, the companies serviced an average 84,828 loans with an aggregate unpaid principal balance of $14.255 billion. Average servicing portfolios were 84,937 loans for $14.056 billion three months prior and 78,667 loans for $13.658 billion twelve months prior.
Average loans serviced per employee fell to 1,030 from 1,088 in the third quarter and 1,223 in the fourth-quarter 2016.
